GlaxoSmithKline and Novartis have announced an asset swap deal worth billions. The two companies will combine multiple brands, including Aquafresh, Beechams, and Tixylix. They will also be swapping vaccines and oncology assets.
Sir Andrew Witty, the CEO of GSK, said the deal is likely one of the first in a new age of mergers and acquisitions. In the past, he said, drug companies would acquire another business because they wanted a useful asset. In the GSK-Novartis deal, both companies got the assets that they were looking for, and that they felt would further their own operations. “I believe if you really focus the transaction on just the things you really care about you can create tremendous value in that space,” Witty said. “This proposed 3-part transaction accelerates our strategy to generate sustainable, broadly sourced sales growth and improve long-term earnings. Opportunities to build greater scale and combine high quality assets in vaccines and consumer healthcare are scarce. With this transaction we will substantially strengthen two of our core businesses and create significant new options to increase value for shareholders.”
GSK announced the deal with a press release, where the company outlined the full list of transactions: